September 26, 2005
Chain Earnings Report
CBRL and Darden Restaurants reported earnings over the past week.
CBRL Group reported comparable store sales for the four-week period ending Sept. 23, 2005, were down 2.4% from the comparable period last year. Comparable sales at the company’s Cracker Barrel units were down 10.7% and sales at its Logan 's Roadhouse restaurants were down 1.5%. CBRL cited gasoline prices, energy cost outlook and the effects of Hurricanes Katrina and Rita as influencing these declines. In September, CBRL lost approximately 131 store operating days due to closings for damages and power outages affiliated with the hurricanes. A total of five stores, three Cracker Barrel and two Logan 's locations, remain closed as a result of Hurricane Katrina.
Darden Restaurants Inc. saw its profit jump 20% in its fiscal first quarter on strong sales growth for both its Olive Garden and Red Lobster chains. Darden also said Hurricane Katrina will have little effect on its operating profit for the year. The company's shares rose $1.46, or 5%, to $30.53 in after-hours trading.
Revenue grew 10% to $1.41 billion from $1.28 billion. Olive Garden sales rose 11% to $643.5 million, on the strength of a same-store sales increase of 7.4%. Red Lobster sales grew 6.6% to $634.1 million, with same-store sales up 5.7%.
Meanwhile, Smokey Bones' barbecue chain saw its revenue increase 46% to $81.7 million, thanks to an additional 34 restaurants in operation. Same-store sales declined 0.1%. The company’s Bahama Breeze restaurants posted a same-store decline of less than 0.5%.
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